Venado Oil & Gas LLC will acquire Texas American Resources I LLC from its private-equity provider First Reserve for an undisclosed amount, the companies said in a joint press release June 1.
Texas American, based in Houston, has operated continuously in Texas since 1990 and has been active in South Texas since 2003.
First Reserve originally invested in Texas American in December 2016 to support the company's pursuit of oil development opportunities in the Eagle Ford Shale in South Texas. Concurrent with the closing of First Reserve's original investment, the company acquired an initial leasehold position in the black oil window of the Eagle Ford trend in Atascosa County, Texas, covering about 12,000 acres.
Since that time, Texas American has completed four add-on acquisitions, nearly doubling the initial acreage position to more than 23,000 net acres as of year-end 2017.
David Honeycutt, CEO of Texas American, said in a statement, "With First Reserve's partnership and network in the energy industry, we are proud to have executed on our business plan and driven meaningful growth in our company. We look forward to continuing to evaluate other attractive potential opportunities in the Eagle Ford Shale."
Venado, an Austin, Texas-based company backed by investment firm KKR & Co. LP, has spent much of 2017 bulking up its position in the Eagle Ford Shale.
In its most recent acquisition, Venado agreed to acquire Cabot Oil & Gas Corp.'s (NYSE: COG) Eagle Ford position covering 74,500 net acres primarily in Frio and Atascosa counties in South Texas for $765 million.
At closing of the Cabot transaction in February, Venado held interest in 112,000 net acres producing more than 43,000 boe/d from the Eagle Ford trend in South Texas.
BMO Capital Markets Corp. was financial adviser to Texas American for the transaction. Terms of the transaction were not disclosed.
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